Getting paid before Christmas – Day 7 Top Tip
I often get asked “It’s mid way through December, how can I get paid before Christmas?” It actually isn’t that hard to still get paid before Christmas, it’s about spending a little time each day, concentrating on one section of the money you are owed and contacting/resolving/allocating anything in that section.
From my almost 20 years experience, I have found the best way to segment who you call is by age of invoice. I am not saying that if yesterday you rung a customer because they had an invoice in the 15+ days you shouldn’t mention any other invoices on their account, it’s just they were your highest priority to contact since they have the oldest debt.
So today I want you to contact anyone who has an invoice in the 10 -14 days overdue sector of your debt. See when you last contacted them, what their comments were and then pick up the phone.
Have a conversation with them about the product/service you provided, ask them about their Christmas plans both work and personal. Make a note of both answers in your CRM or accounting system. Ask them about the invoice that is outstanding, explain it is overdue and you have the right to charge interest under the Late Payment of Commercial Debts (Interest) Act 1998 as well as a fee to cover the time you have spent on trying to collect the money.
Because you are saying this it doesn’t mean it has to be a hostile conversation and depending on ongoing relationship you want with the customer you can always say to them something along the lines of, “if you can get this paid by Friday then I won’t start calculating the interest on this invoice and I’m also prepared to waiver the fee. However if payment is not received on Friday, I’ll have no option but to calculate the daily rate of interest and charge you the fixed fee.”
If you need any advice, or would like to talk about other potential wording, then don’t hesitate to get in contact with me.
I look forward to hearing how you are getting on with getting paid before Christmas.